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TeliaSonera cutting thousands of jobs

Telecoms group TeliaSonera is shedding 2,000 jobs – seven percent of its workforce.

It is part of a plan designed to cut costs by the equivalent of around 230 million euros.

The company, which is part-owned by the Swedish and Finnish states, also warned of industry stagnation until companies are able to turn the surge in video streaming and social networking on smartphones into increased income.

“We have an issue of not enough growth,” CEO Lars Nyberg said during a results conference call. “This is not a TeliaSonera issue, this is an industry issue.”

TeliaSonera’s revenue’s have flatlined since 2008, despite rapid expansion in central Asia, as voice revenues across the industry are squeezed by competition, regulatory pressure and a global economic downturn.

Nyberg said the company’s cost-saving plan revolved around simplifying its ways of working, but gave no details beyond the staff reduction.

“When the industry has no growth and your costs go up by three percent a year, you have to do something,” Nyberg said.